Chicago Clock Corporation issued a 3-for-2 stock split of its common stock,which had a par value of $100 before the split.What dollar amount of retained earnings should be transferred to the common stock account?
A)Par value of $100 per share.
B)Market value per share on the issue date.
C)Half of the previous total amount in the common stock account.
D)Retained earnings aren't transferred to the common stock account.

Question

Quizplus · Accepted Answer

Retained earnings and common stock are unaffected by stock splits. Stock splits reduce the par value per share and increase the number of common shares authorized, issued and outstanding.

Chicago Clock Corporation Issued a 3-For-2 Stock Split of Its